Dubai Residential REIT

Reflecting the continued real estate boom within the UAE, Dubai Residential REIT – which is pitched as the largest listed Shariah compliant REIT within the GCC region – has expanded its initial market capitalization from an initial AED14.3 billion (US$3.9 billion) in four months to AED15.99 billion (US$4.35 billion) as of the 26^th September 2025.

Listed on the Dubai Financial Market on 28^th May 2025, this closed-ended property fund spans more than 35,000 residential units across 21 communities, covering a mix of premium, community, affordable and corporate housing.

“Our objective is to generate sustainable, long-term returns by actively managing assets while capturing growth opportunities in Dubai’s residential sector,” a representative said. The investment strategy focuses on optimizing existing assets through leasing, marketing and refurbishment, alongside acquisitions of built-to-lease properties and selective disposals.

With its portfolio occupancy at 98% at the end of H2 2025, up 2% from H1 2024, this REIT reported a year-on-year 11% higher adjusted EBITDA of AED718 million (US$195.5 million) in the latest half-year for a 75% margin while net profit was up 10% to AED622 million (US$169.35 million). Gross asset value stood at AED23 billion (US$6.26 billion), rising 7% since December 2024.

Given its size, this REIT claims to account for about 6% of Dubai’s rental transactions and 3% of total rental value as of the end of December 2024 with its tenant mix of 57% individual tenants (primarily families) and 43% corporates – which ensures stable cash flows and consistent operating margins.

According to real estate group CBRE, the property market in Dubai was strong in H1 2025 with the office segment seeing average leasing rates rise 23% year-on-year while residential property values posted an annual 14% growth.

Early demand had seen Dubai Residential REIT’s IPO oversubscribed 26 times – resulting in the offer for sale units at AED1.1 (US$0.3) each being increased – and the main REIT owner DHAM Investments, a subsidiary of Dubai Holding, retaining an 85% stake.

For the IPO, 10% of units went to the retail tranche, with initial entry of AED5,000 (US$1,361), while 90% went to institutional investors, with a minimum of AED500,000 (US$136,136). Subscriptions above these thresholds were accepted in multiples of AED1,000 (US$272).

Following a semi-annual dividend distribution policy, with payments scheduled each April and September, the REIT had announced an interim AED550 million (US$149.75 million) distribution of 7.7% for H1 2025.

The REIT aims to distribute at least 80% of profit before changes in fair value of investment property for each accounting period.

Table 1: AuM of REITs in UAE at the end of Q2 2025

Source: IFN Investors Fund Database

*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as recommendations for any fund highlighted. The information presented is not investment advice and should not be treated as such.

Source: Dubai Residential REIT